The $42 million settlement by Murray Goulburn Co-operative of a class action funded by IMF Bentham provides a useful starting point for blowing up some of the myths about the allegedly insidious impacts of class actions and litigation funding.

The case has just about every critical moving part found in a class action, including a board accused of breaching continuous disclosure obligations, a former chief executive who made misleading comments about the business and shareholders keen to seek financial redress.